Over the last two days the stock markets, on a global level, have tanked, and the U.S. Government has unfortunately grown. As if the Government of this great country was not already too large for a free democratic society with Capitalist free markets, the government stepped in to bail out AIG. Many people are saying that it was necessary, but it is tax payer dollars going to that, and the government taking over private assets is not really a part of the Conservative mind set. A few weeks back the government took over the horribly run Fannie Mae and Freddie Mac, organizations that were run into the ground by liberals.
Franklin Raines and Jim Johnson both ran Fannie and Freddie, and guess where they are? They are Economic Advisers for The Messiah, Barry Obama. These gentlemen, I say that loosely, were compensated heavily, and a lot of it was not disclosed. Yet the Democrats have tried to blame all of this on President Bush. President Bush has not been involved, and it was the Clinton Administration, in 1994, that relaxed the standards so that any individual would qualify for a house. Obviously, the people who took out these loans are just as responsible.
John McCain actually tried to stop this mess from occurring in 2006 when he cosponsored Bill S. 190 saying the following: "Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislature."
Furthermore, according to http://www.opensecrets.org/ (http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html ), a web site that lists donor information it seems the Democrats are very popular with Fannie Mae and Freddie Mac employees and Political Action Committees. Open Secrets conducted a search, and for the period of 1989 through 2008, Democrats had received the largest amount of donations from those employed by the now government run entities, but which ones you might ask? Chris Dodd received the most amount of money, he has been in office for the entire 20 year period. The next one might surprise you, but really only if you are ignorant, Barack "The Oracle" Obama received the second most amount. If that is not shocking enough despite his claims of being against lobbyist and all the other lies that spew from his mouth, he was only in the U.S. Senate for two years of the 20 year period that was examined. In third place was another Democratic Presidential Candidate (Former), John Kerry, and Hillary came in 12th, although she has only been in office for 7 of the 20 years. Now I know you are interested in knowing where McCain was on the list. John McCain, although he has served during the entire 20 year period, came in 62nd place.
On another note, Governor Sarah Palin's email was hacked, and the Secret Service is now investigating the incident. The Liberals do whatever they want to, and feel like they should be able to get away with it. On the other hand, us Conservative are scrutinized for everything we do. The shocker here is that the investigation has been derailed a bit by the AP, who refused to cooperate with the Secret Service. How would have thought that the media would not want to cooperate on this, let alone report it.
Dr. Ron Paul, who I support and agree with very much, has this sign on his desk. I think it is too priceless to not post:
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